How to Write an HRMS RFP
Writing an RFP helps you clearly define your organization’s needs and expectations, making vendor evaluation easier and reducing potential misunderstandings during the selection process.
Skip the RFP if your organization is small or your needs are simple; direct communication with vendors might be quicker and more efficient for streamlined procurement.
A well-crafted RFP document can lead to finding a software solution that fits better with your HR teams and budget, often resulting in better pricing and contract terms.
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An RFP, or Request for Proposal, is a document you use when you need to find the right vendor for a specific service or product. It's especially useful when you're looking to implement a new Human Resource Management System (HRMS).
This guide is here to help those of you tackling vendor selection for the first time or looking to refine your process.
Crafting a solid RFP helps you streamline vendor evaluation, ensuring you compare apples to apples. It reduces risk by clearly defining your needs, technical requirements, and expectations upfront—especially around functionality, modules, and pricing.
By following these steps, you can make informed decisions that align with your team’s goals and challenges, from onboarding and talent management to benefits administration and employee self-service.
Do You Actually Need an RFP?
You should consider an RFP when your team’s needs are complex and require a detailed evaluation of HRMS software options.
It’s especially useful in larger organizations or highly regulated industries where compliance, configurable functionality, and scalability are key. If you’re working with a significant budget or need to integrate with existing systems via APIs, an RFP can also help you avoid costly mistakes.
Here are some circumstances where an RFP is necessary:
- Large, multi-department organizations
- High compliance or security requirements
- Complex integration with existing systems
- Significant budget implications
- Customization and scalability needs
When an RFP Might be Overkill
In smaller organizations or when your needs are straightforward, creating an RFP might be more trouble than it’s worth. If you can easily communicate your requirements and evaluate vendors directly based on interface usability or basic employee data needs, skip the RFP and save time—see my top choices of HRMS you might consider instead, below.
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Top HRMS To Consider
Here’s my list of the top 10 HRMS options available, to help you get started in your search:
RFI vs RFP vs RFQ: What’s the Difference?
Understanding the differences between an RFI, RFP, and RFQ can help your team make informed decisions without unnecessary hassle. An RFI gathers basic information, while an RFP seeks detailed proposals, and an RFQ requests pricing. Choosing the right document can streamline your procurement process and reduce friction:
| Document Type | Purpose | When to Use | What to Include | Level of Detail Required |
| Request for Information (RFI) | Gather general information about potential vendors | Early in the process when exploring options | Company background, services offered, basic capabilities | Low |
| Request for Proposal (RFP) | Obtain detailed proposals and solutions | When you need comprehensive solutions for complex needs | Specific requirements, project goals, evaluation criteria | High |
| Request for Quotation (RFQ) | Get pricing details for defined services or products | When cost is the primary concern and requirements are clear | Detailed specifications, quantity, delivery terms | Medium |
Common RFP Mistakes to Avoid
Rushing or skipping key details in your RFP can lead to confusion, wasted time, or vendors that don’t fit well with your organization's needs. By avoiding common mistakes, you can create a smoother HRMS selection process and find the right HRMS software match for your team.
Whether you’re early in the RFP process or refining your HR technology procurement strategy, here are some pitfalls to watch out for:
Insufficient Background or Context
Without enough background or context, vendors may not fully understand your needs, HR workflows, or the HRIS environment they’ll be working in. This can lead to vendor responses that miss the mark.
Provide clear context about your organization’s goals, culture, technical requirements, and existing HR systems to ensure vendors tailor their proposals appropriately. Highlighting relevant modules like onboarding, talent management, or performance management can improve alignment.
Missing or Unclear Budget
If you don't share your budget or it's unclear, vendors might propose solutions that are way off base. This can waste time and lead to frustration. Clearly outline your budget expectations and constraints, and refer to resources like the HRMS pricing guide to understand how much HRMS costs.
Vague Requirements or Legal Jargon
Using vague requirements or filling your request for proposal with legal jargon can create confusion and misinterpretation. Be specific about what you’re looking for and use plain language.
For example: Instead of saying “must comply with relevant laws,” list the specific regulations that apply to your industry.
You should also define desired functionality, such as automated enrollment, employee self-service, benefits administration, or configurable interfaces, to give vendors a clear sense of priorities.
No Evaluation Criteria Shared
If you don’t share how you’ll evaluate proposals, vendors won’t know what to focus on. This can result in submissions that don’t meet your organization needs or the expectations of key stakeholders.
Clearly outline your evaluation criteria—such as HR data security, support options, integration with existing APIs, or post-implementation process—so vendors can align their proposals accordingly and support your shortlist decisions.
No Standard Format for Vendor Responses
Without a standard format for responses, comparing proposals becomes challenging and time-consuming. Provide an RFP template or outline (like an HRMS RFP template) for vendors to follow.
This ensures you can easily compare offerings side by side—from functionality to upgrades—and streamline the selection process. A consistent format also improves how end users and HR teams assess vendor fit during final review.
Assemble Your HRMS RFP Team
Creating a strong RFP isn’t a solo job; it requires input from a cross-functional group to truly reflect your organization's needs. By involving the right people early, you reduce risk and avoid rework later. Here's who should be part of your team:
Project Sponsor
The project sponsor provides leadership and ensures that the RFP aligns with the organization's strategic goals. They can secure necessary resources and support to keep the project on track. Typically, this role is filled by a senior executive, such as a VP of HR or Operations.
Functional Experts
Functional experts bring in-depth knowledge of specific needs and processes that the HRMS must support. Their insights ensure the RFP covers all necessary functionalities and requirements. This group often includes HR managers, IT specialists, and compliance officers.
Procurement or RFP Writers
Procurement or RFP writers have the expertise to structure and articulate the RFP clearly and concisely. They ensure the document is comprehensive and follows best practices. This team might include procurement officers or experienced RFP consultants.
End Users and Stakeholders
End users and stakeholders provide practical insights into how the HRMS will be used daily, ensuring the RFP captures real-world needs. Their feedback helps tailor the RFP to enhance user experience. This group often includes HR staff, department heads, and employee representatives.
Define Must-Haves & Goals
Before you send out an RFP, your team needs to clearly define what the new solution must accomplish and why. Aligning around pain points, goals, and non-negotiables helps vendors respond accurately and makes evaluating proposals easier. Consider these key factors when defining your needs:
- Pain points with current system: What issues are you facing with your current HRMS? Maybe it's slow processing times or lack of integration with other tools. Identifying these will help you prioritize what needs fixing.
- Required improvements and success outcomes: What improvements do you want to see, and how will you measure success? For instance, if you need faster onboarding, set a goal to reduce onboarding time by 30%.
- Functional, technical, and compliance needs: What specific functions must the new HRMS support? Think about compliance requirements, like GDPR, and technical needs, such as integration with payroll systems.
- User roles, usage levels, workflows: Who will use the system, and how often? Understanding user roles and daily workflows ensures the solution fits your team's needs. Are there specific workflows that must be streamlined?
- Deployment preferences: Do you prefer a cloud-based solution or on-premises? Consider your organization's IT infrastructure and future growth plans when deciding on deployment.
Write the HRMS RFP
Now it’s time to put everything together in a clear, structured RFP document. A well-organized and complete RFP makes it easier for vendors to respond accurately and for your team to evaluate those responses. Here's what you should include:
1. Executive Summary
Provide a brief overview of your organization and the purpose of the RFP. Clearly state what you're seeking in an HRMS and why it's needed. This helps vendors understand your high-level goals and align their proposals accordingly. Keep it concise, focusing on the main objectives and anticipated outcomes.
2. Scope of Work
Detail the specific tasks and deliverables you're expecting from the vendor. Define the project's boundaries and any limitations to avoid misunderstandings. For example, specify if you need ongoing support or just initial setup. This clarity helps vendors gauge if they can meet your expectations.
3. Technical Requirements
List the technical specifications the HRMS must meet, such as compatibility with existing systems and platforms. Highlight any specific technologies or integrations needed. For instance, if you use a particular payroll system, mention the need for seamless integration. This ensures vendors propose solutions that fit your tech landscape.
4. Vendor Qualifications
Outline the qualifications and experience you expect vendors to have. This could include industry experience, client testimonials, or case studies. For example, if you're in healthcare, you might require vendors to have experience with healthcare HRMS. This helps you shortlist vendors who truly understand your sector's nuances.
5. Security and Compliance Needs
Specify any security standards and compliance requirements the HRMS must adhere to. This could include data protection laws like GDPR or industry-specific regulations. By being explicit, you ensure vendors propose solutions that safeguard your data and meet legal obligations.
6. Implementation and Training Expectations
Describe your expectations for the implementation timeline and any training required for your team. If you need a phased rollout or specific training sessions, make it clear. This helps vendors plan their resources and ensure a smooth transition for your team.
7. Pricing and Licensing
Request detailed pricing information, including any licensing fees, maintenance costs, or additional charges. Ask for a breakdown to compare costs effectively. For instance, if there are tiered pricing options, request clarity on what each tier includes. This transparency aids in budget planning and decision-making.
8. Contract Terms
State any preferred contract terms, including duration, renewal options, and termination clauses. If you have specific terms that are non-negotiable, highlight them. This ensures that both parties have a clear understanding of the contractual obligations from the outset.
9. Submission Instructions
Provide clear instructions on how vendors should submit their proposals, including any deadlines and format requirements. Specify if you need digital copies, hard copies, or both. This ensures a smooth submission process and helps you manage and review proposals efficiently.
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Define Your Evaluation Criteria
Clearly defined evaluation criteria help keep your decision process objective, transparent, and aligned with your business goals. Establishing these criteria before reviewing proposals prevents bias and ensures a fair comparison. Here's how to define your evaluation criteria:
What Matters Most?
Focus on 3–5 weighted categories that align with your goals and priorities. This helps you concentrate on what's truly important for your team. Common RFP scoring categories for HRMS include:
- Cost
- Functionality
- Vendor experience
- Integration capabilities
- User-friendliness
By narrowing down these categories, you ensure your evaluation aligns with your organization's needs.
Use a Scoring Matrix
A scoring matrix allows you to apply weightings to each category based on importance. For example, if functionality is key, you might assign it a weight of 40%, while cost might be 20%. Score each criterion on a 1–5 or 1–10 scale to maintain consistency. Adjust weightings to reflect your internal priorities and ensure that your evaluations are fair and balanced.
Clarify Your Scoring Process
Define who will score the proposals and how they will do it. Use a standardized rubric to guide your team and ensure everyone is on the same page. Schedule a meeting to align reviewers before scoring begins, ensuring they understand the criteria and the scoring process. This preparation helps avoid discrepancies and keeps the evaluation process smooth and transparent.
Issue the HRMS RFP
Issuing the RFP isn't just about sending it out; it's about ensuring vendors have the right access, timelines, and instructions to respond effectively. A smooth distribution process sets the tone for the quality of proposals you'll receive. Here's how to manage this process:
Choose the Right Distribution Method
Consider common distribution options like email, RFP software platforms, or procurement portals. Using a centralized system helps you track responses and maintain organization. You might include a vendor contact list or use a role-based inbox for clarity. This ensures all communication stays streamlined and accessible to your team.
Set Clear Timeline Expectations
Provide a standard RFP timeline to guide vendors. Include the following dates:
- RFP release date
- Vendor Q&A window
- Final submission deadline
- Evaluation and selection period
Make sure this timeline is shared in the RFP itself to help vendors plan accordingly. This transparency keeps everyone aligned and on schedule.
Define Submission Requirements
Clearly outline what vendors need to know to submit correctly. Specify accepted file formats like PDF, Word, or Excel templates, and preferred delivery methods such as an upload portal or reply-to inbox. Indicate whether vendors must use specific templates or forms and if late submissions will be accepted. This clarity helps vendors meet your expectations and reduces potential issues.
Evaluate & Shortlist Vendor Responses
This is where your structured approach pays off, as your team turns vendor responses into a confident shortlist. Consistency, objectivity, and collaboration across everyone involved in the evaluation are key. Following these steps will help you effectively evaluate and shortlist vendors:
- Organizing and formatting proposals for review: Make sure all proposals are formatted similarly for easy comparison. Create a summary sheet for each proposal highlighting key points. This makes it easier to spot differences and similarities quickly.
- Using a scoring matrix: Apply your scoring matrix consistently to each proposal. Score each category based on your criteria, and tally up the scores to see which vendors stand out. This objective approach helps you focus on facts rather than opinions.
- Scheduling demos and interviews: Invite top vendors to present demos and conduct interviews. How do their solutions perform in real-world scenarios? These sessions provide a deeper understanding of their offerings and compatibility with your needs.
Checking references: Reach out to other companies that have used the vendor's HRMS. What challenges did they face? This step confirms the vendor's claims and gives insights into their reliability and support. - Clarifying anything unclear in proposals: Don't hesitate to ask vendors for clarification on any ambiguous points. Clear up any confusion before making decisions. This ensures you fully understand what each vendor is offering.
Select & Notify Vendors
Once your team has chosen a vendor, the final steps are just as important as the evaluation process. Clear, professional communication with all vendors, both selected and unselected, is crucial. Ensuring internal alignment before moving into contract execution will set a solid foundation for your project. Here's what to do next:
Notify Selected and Unselected Vendors
Timely, respectful communication with vendors shows professionalism and maintains good relationships. Send a short thank-you note to all vendors, and provide high-level feedback where appropriate. This courtesy can foster positive connections for future interactions.
Prepare for Final Negotiations
Common negotiation items include pricing, service level agreements (SLAs), and contract terms. Define your team's walk-away points in advance to avoid surprises. Use a checklist or agenda to stay focused during discussions, ensuring all key issues are addressed efficiently.
Ensure Internal Alignment Before Signing
Typically, you'll need approvals from leadership or finance, along with a legal or procurement review. Summarize the key decision drivers to help internal reviewers understand the rationale and move quickly. This preparation ensures everyone is on the same page before finalizing the contract.
What’s Next:
If you're in the process of researching HRMS, connect with a SoftwareSelect advisor for free recommendations.
You fill out a form and have a quick chat where they get into the specifics of your needs. Then you'll get a shortlist of software to review. They'll even support you through the entire buying process, including price negotiations.